E-Special Softech Projects Pvt Ltd. , CHENNAI V. ACIT Company Circle II(1), CHENNAI

ITA 1818/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6463 (ITAT-CHENNAI)
• Duration Of Justice: 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 24-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K HEMALATHA ACA
• Keywords: Competent authority
• Section: 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.1818/MDS/2017 ( )( / ASSESSMENT YEAR : 2005-06 & S.P. NO.214/MDS/2017 (IN I.T.A. NO.1818/MDS/2017) M/S E-SPECIAL SOFTECH PROJECTS PVT. LTD., PLOT NO.1782, 5 TH STREET, I-BLOCK, ANNA NAGAR (WEST), CHENNAI - 600 040. PAN : AABCE 1776 B V. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE II(1), CHENNAI - 600 034. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : MS.K. HEMALATHA, ACA -.+, / 0 / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT 1 / 2% / DATE OF HEARING : 28.07.2017 3') / 2% / DATE OF PRONOUNCEMENT : 03.08.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE STAY PETITION FILED BY THE ASSESSEE WAS POST ED FOR HEARING TODAY. WHILE ARGUING THE STAY PETITION, BO TH LD. REPRESENTATIVE FOR THE ASSESSEE AND THE LD. DEPARTM ENTAL REPRESENTATIVE SUBMITTED THAT THE CIT(APPEALS) DIRE CTED THE 2 I.T.A. NO.1818/MDS/17 S.P. NO.214/MDS/17 ASSESSING OFFICER TO RE-EXAMINE THE MATTER FOR DEDU CTION UNDER SECTION 10A OF THE INCOME-TAX ACT, 1961 (IN SHORT ' THE ACT'). IN FACT, THE ASSESSEE MADE A CLAIM ORIGINALLY IN THE RETURN OF INCOME UNDER SECTION 10B OF THE ACT. THE CIT(APPEALS) FOUND THA T DUE TO LACK OF REQUISITE APPROVAL FROM THE COMPETENT AUTHORITY, TH E ASSESSEE IS NOT ENTITLED FOR DEDUCTION UNDER SECTION 10B OF THE ACT . HOWEVER, THE CIT(APPEALS) DIRECTED THE ASSESSING OFFICER TO EXAM INE THE ALTERNATIVE CLAIM UNDER SECTION 10A OF THE ACT. 2. THE MAIN CONTENTION OF THE ASSESSEE BEFORE THIS TRIBUNAL IS THAT THE CIT(APPEALS) HAS NO AUTHORITY TO REMAND BA CK THE MATTER. ACCORDING TO THE LD. REPRESENTATIVE, THE CIT(APPEAL S) HAS TO EITHER DECIDE THE ISSUE ON MERIT BY HIMSELF OR HE HAS TO R EJECT THE CLAIM OF THE ASSESSEE. THEREFORE, THE LD. REPRESENTATIVE PR AYED TO TAKE UP THE APPEAL ITSELF FOR HEARING AND THE MATTER MAY BE REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE ALTERNATIVE CLAIM OF THE ASSESSEE UNDER SECTION 10A OF THE ACT IN EXE RCISE OF APPELLATE JURISDICTION VESTED ON THIS TRIBUNAL. TH E LD. D.R. ALSO HAS NO OBJECTION TO TAKE UP THE APPEAL ITSELF FOR HEARI NG AND TO REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER BY THE ORDER OF THIS TRIBUNAL. THEREFORE, WITH THE CONSENT OF BOTH THE REPRESENTATIVES OF 3 I.T.A. NO.1818/MDS/17 S.P. NO.214/MDS/17 THE ASSESSEE AND THE REVENUE, THE APPEAL ITSELF WAS TAKEN UP FOR HEARING. 3. AS RIGHTLY SUBMITTED BY THE LD. REPRESENTATIVE F OR THE ASSESSEE AND LD. DEPARTMENTAL REPRESENTATIVE, THE A LTERNATIVE CLAIM OF DEDUCTION UNDER SECTION 10A OF THE ACT NEE DS TO BE EXAMINED ON MERIT. THOUGH THE CIT(APPEALS) DIRECTE D THE ASSESSING OFFICER TO EXAMINE THE MATTER AFRESH, THI S TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT(APPEALS) HAS NO POWER TO SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFIC ER. AS RIGHTLY SUBMITTED BY THE LD. REPRESENTATIVE FOR THE ASSESSE E, THE CIT(APPEALS) HAS TO EXAMINE THE MATTER HIMSELF ON M ERIT. SINCE THE CIT(APPEALS) HAS NOT EXAMINED THE MATTER ON MERIT A ND HE SIMPLY REMANDED THE MATTER BACK TO THE FILE OF THE ASSESSI NG OFFICER. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT IN THE I NTEREST OF JUSTICE, THE MATTER NEEDS TO BE RE-EXAMINED BY THE ASSESSING OFFICER. ACCORDINGLY, IN EXERCISE OF THE APPELLATE JURISDICT ION CONFERRED ON THIS TRIBUNAL UNDER THE PROVISIONS OF INCOME-TAX AC T, THE ORDERS OF THE AUTHORITIES BELOW ARE SET ASIDE AND THE ALTERNA TIVE CLAIM MADE BY THE ASSESSEE UNDER SECTION 10A OF THE ACT IS REM ITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING O FFICER SHALL 4 I.T.A. NO.1818/MDS/17 S.P. NO.214/MDS/17 EXAMINE THE MATTER IN THE LIGHT OF THE MATERIAL THA T MAY BE FILED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFRESH ON MERIT IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPO RTUNITY TO THE ASSESSEE. 4. IN VIEW OF THE ORDER PASSED IN THE APPEAL ITSELF , THE STAY PETITION FILED BY THE ASSESSEE BECOMES INFRUCTUOUS. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. HOWEVER, THE STAY PETITION IS DISMISSED. ORDER PRONOUNCED ON 3 RD AUGUST, 2017 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 3 RD AUGUST, 2017. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A)-6, CHENNAI 4. PRINCIPAL CIT, CHENNAI- 2, CHENNAI 5. 7: -2 /DR 6. ;( < /GF.